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Thanks for the detailed repro. I opened #10445 to make env shell expansion match the documented/POSIX-style behavior for these cases: ${VAR:-default} now falls back when the value is empty, ${VAR-default} keeps empty strings as set, and fallback branches like ${UNSET:-$OTHER} are shell-expanded.

Validated with mise run test:e2e e2e/env/test_env_shell_expand and mise run format.

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